Scaling and Selling Your Amazon Business

Posted: Sep 15

If you think that because you are making 5-6 digits in profit you can splurge, hold your horses.
Once you start taking out a significant amount of cash from your store, your business is destined to fail. Let us tell you why.

 

  • You must increase the value of your business.
    And in this case, cash flow can be your best friend or your worst nemesis. It all depends on how you allocate it.
  • When you have a profitable product, you want to scale.
    When you scale, you have to think ahead.

 

The increased scalability means more traffic and orders to your store. But when the number of sales increases, you must have enough stock to meet the demands.

 

This is why in most accounts we manage, we reinvest the generated profits into the products. And we encourage our clients to keep reinvesting until they reach the sales ceiling.

 

This way you:

  • Increase the value of your business and
  • Prepare the store for future acquisition.

 

Because one of the most profitable days for you is going to be the day you sell your Amazon business to a bigger fish.

 

Investors are always on the lookout for smaller, dynamic moms-and-pops stores. For them, this is a cash cow and they are willing to pay 3-4 times the amount of your yearly gross profit.

 

So our advice would be:
1) Put your head down for 2-3 years, and only take as much as you need to pay the bills
2) Scale your store to the ceiling of your niche.
3) Sell your business for a 7-digit cheque and enjoy!

Interested in conquering Amazon together?

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